How to Create a Loan fee

How to Create a Loan fee

  1. Go to Setup-> Loan fees

  2. Click on Add Loan fee
  3. Enter the loan fee details as requested and click on Save.
    1. Name - Name of the Loan Fee (For example, Processing Fee)
    2. Fee Type - This could either be a Rate, fixed Amount or Fixed amount per installment
    3. Collection Rule - Choose how you want the fees to be collected , this could be 
      1. Upfront - Paid before a loan is issued
      2. Capitalized - Added to the principal
      3. Deducted - Deducted from Principal
      4. Paid with Loan - Added to the loan balance
      5. Deposit - (Mainly used BNPL or IPF Loans)
    4. Computed On  - The fee can be calculated on the principal,  Principal +Interest or the Disbursement amount
    5. Allocation Method - You can either spread the fees across all installments or select that it is cleared in the first installment.
    6. Receivable Account - Select the receivable chart of account to be affected (DR)
    7. Income Account - Select the Income chart of account to be affected (CR)
    8. Type
      1. Fixed Amount - Enter the amount if you selected the amount fee type and the percent if you selected Rate.
      2. Graduated By Value - This is used when you want the amount charged to change based on the value of the loan. 
      3. Graduated By Period (Months)- This is used when you want the amount charged to change based on the value of the loan.
      4. For the Graduated option, you'll add the level bands. Click on Add
        1. Enter the minimum (Start), Maximum ( End), Rate ( Enter the rate or amount to charged for the band).
        2. Click on Save.
          You can add Several Bands 

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